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Colorado Tax Authorities Seize Boulder's Beloved 'Chicken on the Hill'

Chicken on the Hill, the wildly popular bar and restaurant among CU students, had its location on University Hill, better known as “The Hill,” shuttered on Monday by Colorado tax authorities.

 

Colloquially known by the student body as “Chicken,” the eclectic fried food joint and full-service bar describes its now ceased operation as “the place where great cooking and fantastic vibes meet.”

 

Chicken on the Hill's website on Feb. 2, 2024.
A screenshot of Chicken on the Hill’s website landing page shows that little has changed about the online presence of the establishment since its shuttering on Feb. 12. (Chicken on the Hill, The Bold/Cooper Baldwin)

Until its surprising demise last Monday, Chicken routinely attracted large crowds and often had lines of student patrons snaking around the front of the restaurant during peak weekend times.

 

A well-loved, mainstay spot for Hill-goers and poultry partisans alike, Chicken on the Hill served the CU Boulder student population, as well as the Boulder community, for nearly five years.

 

Chicken on the Hill patron Nicole V. described the establishment in a Sept. 2023 Google Review as a “great place for a quick lunch — tasty sandwiches,” also noting its popularity among university students, “It lights up Thursday night through the weekend and is packed with college students.”

 

Sitting on 13th Street near other well-known Boulder eateries, Illegal Pete’s and The Sink, Chicken enjoyed a prime location across from the University of Colorado, benefitting from dense foot traffic in the lively University Hill area surrounding it.

The distraint, or distress warrant, forcing the sale of Chicken on the Hill's assets in order to satisfy their outstanding tax debts remains affixed to the unoccupied building - a contrasting image from the raucous and densely-packed storefront of last week. (The Bold, Gabriella Isukh)
The distraint warrant, forcing the sale of Chicken on the Hill’s assets in order to satisfy their outstanding tax debts, remains affixed to the unoccupied building — a contrasting image from the raucous and densely-packed storefront of last week. (The Bold, Gabriella Isukh)

 

According to the Colorado Department of Revenue, the 1119 13th Street property was seized for nonpayment of taxes. The distraint warrant’s total collection amount totals $27,622.64, which is to be collected from the sale of the assets and property holdings of Chicken on the Hill and their registered parent company, Penko Corporation.

 

Colorado tax code allows for the seizure of  “assets such as wages, bank accounts and property such as cars, boats or real estate” from delinquent individuals and business entities.

 

In line with the law, the state of Colorado will auction off the fryers, barstools, beer glasses and neon signs formerly belonging to Chicken —  aiming to recoup the revenues the state lost on the delinquent dues.

 

Details on the distraint warrant indicate the Penko Corporation has not paid sales and use taxes since May 2022. The warrant, plastered on the doors of the defunct business, was issued on Jan. 16.

 

The individual owner of Penko Corporation and the pertaining Chicken subsidiary, Penko Corporation DBA Chicken on the Hill, could not be verified by The Bold.

 

 

However, minutes from Boulder County’s Beverage Licensing Authority Hearing held on Jan. 17 lists an individual by the name of Duong Lu as the licensee accountable for Chicken’s sale of alcohol.

Chicken on the Hill's parent company, Penko Corporation.
Publicly available minutes from Boulder County’s BLA list Duong Lu as the licensee for Chicken on the Hill’s address. (City of Boulder, The Bold/Cooper Baldwin)

 

Further research of the Penko Corporation’s tax filings reveal that the corporation registered the Chicken on the Hill title as a trade name in which Penko conducts business in May 2019 — cementing the linkage and synonymy of the two entities.

Registration of the Chicken on the Hill trade name under the true operating name, Penko Corporation, was filed with the Colorado Secretary of State's office in May 2019. (Colorado Secretary of State, The Bold/Cooper Baldwin)
Registration of the Chicken on the Hill trade name under the true operating name, Penko Corporation, was filed with the Colorado Secretary of State’s office in May 2019. (Colorado Secretary of State, The Bold/Cooper Baldwin)

 

Chicken’s woes did not start recently, though, as records indicate Penko Corporation received at least four notices of noncompliance and delinquency from the Colorado Secretary of State, since its founding in 2019. The notices detail Penko’s failure to submit their annual Periodic Report to the Secretary of State’s office, which is required by Colorado law for all limited liability companies (LLCs) like Chicken on the Hill.

Penko Corporation's storied history of tax-related noncompliance and delinquency dates back to Aug. 2020. (Colorado Secretary of State, The Bold/Cooper Baldwin)
Penko Corporation’s storied history of tax-related noncompliance and delinquency dates back to Aug. 2020. (Colorado Secretary of State, The Bold/Cooper Baldwin)

 

With the full and total seizure of Chicken and Penko Corporation’s property and assets by the state of Colorado, the book is all but closed on the crowd favorite Chicken on the Hill. The boisterous and mysterious establishment will be missed by many at CU and in the Boulder community, and remembered fondly for the third place environment that it provided for its patrons over the last five years.

Some might say the sky is falling, some might call it a hoax, but the beloved Boulder establishment, Chicken on the Hill — unbeknownst to even their most avid supporters — has served its final customer. (The Bold/Gabriella Isukh/Cooper Baldwin)
Some might say the sky is falling, some might call it a hoax, but the beloved Boulder establishment, Chicken on the Hill — unbeknownst to even their most avid supporters — has served its final customer. (The Bold/Gabriella Isukh/Cooper Baldwin)